The portal, found at http://www.minigrids.go.tz/, provides licensing, financing, regulatory, and other information and support to small, renewable power producers in Tanzania who want to sell electricity to consumers, especially to the millions in the country not connected to the main grid.
Establishing the online portal is the latest step in a $5 million program IFC launched in 2015 to help Tanzania implement affordable and reliable renewable energy solutions. IFC’s mini-grid program is being implemented in partnership with the Scaling-up Renewable Energy Program of the Climate Investment Funds.
“The portal is part of IFC’s wider strategy in Tanzania to increase access to energy, especially to low-income communities that are not connected to the main grid,” Said Dan Shepherd, IFC’s Regional Lead for Energy & Resource Efficiency advisory services. “IFC is at the forefront of designing and implementing new solutions to help increase access to energy in Africa.”
Mini-grids are technically and commercially viable for high-density populations that live outside the reach of the national electricity grid. Tanzania’s government estimates that about half of the country’s rural population could be served by off-grid options in a cost-effective manner, and that mini-grids could benefit 9.1 million people in the country.
The online portal contains information from licensing - which covers the procedures for obtaining the various permits required to develop and operate a mini-grid in Tanzania, to financing, and a tool that maps villages in Tanzania, and provides data on their populations and current electrification status. The portal is being hosted by the Tanzania Rural Energy Agency.
IFC, a leader in renewable energy finance, helps developing countries transition to a low carbon future. Over the past three years, IFC has financed close to $3.5 billion in renewable energy projects worldwide, including biomass, geothermal, hydro, solar, and wind.
As a member of the World Bank Group, IFC is the largest global development institution focused on the private sector in emerging markets. Working with more than 2,000 businesses worldwide, we use our capital, expertise, and influence, to create opportunity where it’s needed most.
In Financial Year (FY15), IFC’s long-term investments in developing countries rose to nearly $18 billion, helping the private sector play an essential role in the global effort to end extreme poverty and boost shared prosperity.
Late last year, IFC launched a $5 million program to increase access to energy in Tanzania by developing a market for mini-grids. The initiative aims to bring affordable, off-grid renewable energy to households and businesses in rural Tanzania.
IFC pledged to work with project developers in Tanzania to promote commercially viable mini-grid business models, and will advise banks and financial institutions on how to extend long term finance to mini-grid developers.
Tanzania has been selected as one of the first countries to test the concept of using small-scale renewable energy production sources under a new program, called the Scaling-up Renewable Energy in Low Income Countries Program. In Tanzania, it aims to help diversify energy production away from fossil fuel based sources, according to IFC.
Lutengano Mwakahesya, Director General of Tanzania's Rural Energy Agency then said, "We have an urgent task ahead of us to increase energy access in Tanzania. Mini-grids are a key part of the solution, so this program with IFC is an essential step to improve the quality of life of households, demonstrating the
The Climate Investment Funds (CIF) are unique financing instruments designed to accelerate transformational change towards low-carbon and climate-resilient development through scaled-up financing channeled through the Multilateral Development Banks, including IFC.
The Scaling Up Renewable Energy in Low Income Countries Program (SREP), one of the CIF programs, helps deploy renewable energy solutions for increased energy access and economic growth in the world’s poorest countries.
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